Hey, Who’s Up for a $165 Billion Union Bailout?

by Stephan Tawney on May 25, 2010

This should go over well. Well, actually, it’s more than $165 billion. In fact, the bailout could end up being unlimited.

A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.

The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.

As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.

Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.

The unholy tie between the union establishment and the federal government gets even tighter, as American taxpayers are expected to bailout the pension funds of people in better fiscal health than most taxpayers are on any given day.

The unions made unsustainable promises and they knew it. Now they expect the American taxpayers to run in and save the day so they can keep those same promises. We should have to pay so union bosses can keep their power.

The saddest part? I expect this major redistribution of wealth to pass. Democrats are entirely beholden to the union establishment and will essentially do anything they can to keep their benefactors happy.



Trackbacks/Pingbacks

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